The Regional Economic Model

The purpose of the model is to have a tool for assessing the Danish national and regional economy.

• Comparative analysis — what can we learn from others, nationally and internationally
• Monitoring and evaluation of initiatives, projects and programmes
• Projections based on local conditions
• Scenario and impact calculations based on local assumptions

Results from the model have been used both by CRT in connection with its own publications and by external users, such as ministries, governments, regions, municipalities, consulting houses, companies, etc.

The Regional Model for Business and Employment SAM/K-LINE® is a socio-economic model developed and operated by researchers at the Centre for Regional and Tourism Research.

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The model combines the local social accounting SAM-K (“Social Accounting Matrices for Municipalities”) with the regional economic calculation model LINE (“Local Intersectoral and Interregional Economic Model”).

SAM-K is a local community accounting

It is an expanded version of the regional accounts which Statistics of Denmark sets out for Denmark, which adds an exhaustive and flexible description of economic, business and employment activity in all Danish municipalities, regions and labour force countries.

LINE is a local economic calculation model.

The LINE model can set up a regional community accounting with municipalities as the geographical unit.

In aggregation, the model can also be applied to groups of municipalities of their choice such as regions, employment regions, and labor countries.

With specified assumptions that the user can choose for himself, the model, in conjunction with SAM-K, can calculate a new regional accounting based on these self-selected assumptions.

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Regional effects of national policy actions can only be analysed to a limited extent in national models

National economic models cannot be used for economic analyses and forecasts of regions and municipalities.

The Regional Economic Model is a tool for regional economic analysis and forecasting

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• Covers the 5 regions and 98 municipalities
• Contains both the macroeconomic dimension and the geographical dimension
• Rooted in the research community
• High quality data base with long time series
• External international evaluation of the Welfare Model in 2018/2019
• Well tried and tested
• Programmed in Contemporary Languages (GAMS)

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For a comprehensive documentation of SAM-K/LINE please refer to the publication SAM-K/LINE: Model Documentation (2024).

This documentation provides a description of both the historical interregional community accounting (SAM-K) as well as the interregional macro model (LINE). It is structured in the following sections:

• Introduction to the use of SAM-K/LINE
• Description of the main features of SAM-K/LINE
• A more detailed review of SAM-K/LINE
• Description of the two versions released in 2024

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Other documentation of SAM-K/LINE:

If you want a more technical and mathematical review of SAM-K/LINE, please refer to the doctoral thesis Regional Economic Development from a Local Economic Perspective — A General Accounting and Modelling Approach (2009) by Bjarne Madsen.

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